Does the requirement of an engagement partner signature improve financial analysts’ information environment in the United Kingdom?

Economic Consequences of Implementing the Engagement Partner: Signature Requirement in the UK

“…The benefits and costs of this rule is debatable. Although three studies (Carcello and Li 2013;Liu 2017;John, Liu, and Sunder 2017) provide evidence on the benefits of a similar rule (implementation of the EP signature requirement) in the UK over a short period, there is the lack of the evidence whether the benefits of disclosing the EP's identity hold over a long-term period. This study provides first hand empirical evidence on whether and the extent to which the implementation of the EP signature requirement benefits analysts information environment over long time.…”

“…Finally, Liu (2017) examines how the adoption of engagement partner signature requirement impacts analysts' information environment, using the UK firms as the test sample and the French, German, and Netherlandic firms as the control sample. Employing difference-in-difference analyses, Liu (2017) finds there was an increase in the analysts' following and analysts' forecast accuracy as well as a decrease in the analysts' forecast dispersion from the two-year-pre to the two-year-post-signature period.…”

“…Employing difference-in-difference analyses, Liu (2017) finds there was an increase in the analysts' following and analysts' forecast accuracy as well as a decrease in the analysts' forecast dispersion from the two-year-pre to the two-year-post-signature period. While this paper extends her study by testing the long-term effect of the EP signature requirement on the analysts' information environment, this paper is different from Liu (2017) in terms of using different proxies for analysts' information environment and over different longer test periods.…”

“…Employing difference-in-difference analyses, Liu (2017) finds there was an increase in the analysts' following and analysts' forecast accuracy as well as a decrease in the analysts' forecast dispersion from the two-year-pre to the two-year-post-signature period. While this paper extends her study by testing the long-term effect of the EP signature requirement on the analysts' information environment, this paper is different from Liu (2017) in terms of using different proxies for analysts' information environment and over different longer test periods. Although Liu (2017) finds that the implementation of EP signature improves analysts information environment over 2-year period, we do not know if the effect of the EP signature on analysts information environment holds over long-term period, which also is the goal of this regulation.…”

أثر الإفصاح الاختیاری عن شریک المراجعة على جودة المراجعة: دلیل تطبیقی من الشرکات المقیدة بالبورصة المصریة

“…‫جودة‬ ‫على‬ ‫ه‬ ‫وتأثير‬ ‫اجعة،‬ ‫المر‬ ‫شريك‬ ‫عن‬ ‫اإلفصاح‬ ‫لمتطلبات‬ ‫الشخصي‬ ‫الجانب‬ ‫على‬ ‫أنه‬ ‫إال‬ ‫اجعة.‬ ‫المر‬ ‫ت‬ ‫لم‬ ‫ا‬ ‫اجع‬ ‫المر‬ ‫جودة‬ ‫على‬ ‫لإلفصاح‬ ‫متسقة‬ ‫ا‬ ً ‫آثار‬ ‫حدد‬ ‫ة،‬ ‫و‬ ‫قدم‬ ‫ذلك،‬ ‫من‬ ‫العكس‬ ‫على‬ ‫ت‬ ‫البعض‬ ‫خلص‬ ‫فقد‬ ‫مختلطة،‬ ‫نتائج‬ (Carcello and Li 2013;Carcello and Santore 2015;Liu 2017;Bell 2019;Brown et al 2019;Blay et al 2019;Dao et al 2019 (Huddart and Liang 2003;2005) . .…”